U.S. Gains 467,000 Jobs in January, Hiring Much Stronger Than Expected

Total nonfarm payroll employment rose by 467,000 in January, and the unemployment
rate was little changed at 4.0 percent, the U.S. Bureau of Labor Statistics reported
today. Employment growth continued in leisure and hospitality, in professional and
business services, in retail trade, and in transportation and warehousing. 

This news release presents statistics from two monthly surveys. The household survey
measures labor force status, including unemployment, by demographic characteristics.
The establishment survey measures nonfarm employment, hours, and earnings by industry.
For more information about the concepts and statistical methodology used in these two
surveys, see the Technical Note.

Household Survey Data

Both the unemployment rate, at 4.0 percent, and the number of unemployed persons, at
6.5 million, changed little in January. Over the year, the unemployment rate is down
by 2.4 percentage points, and the number of unemployed persons declined by 3.7 million.
In February 2020, prior to the coronavirus (COVID-19) pandemic, the unemployment rate
was 3.5 percent, and unemployed persons numbered 5.7 million. 

Among the major worker groups, the unemployment rates for adult men (3.8 percent) and
Whites (3.4 percent) edged up in January. The jobless rates for adult women (3.6 percent),
teenagers (10.9 percent), Blacks (6.9 percent), Asians (3.6 percent), and Hispanics 
(4.9 percent) showed little or no change over the month. 

Among the unemployed, the number of job leavers increased to 952,000 in January, following
a decrease in the prior month. The number of persons on temporary layoff, at 959,000 in
January, also increased over the month but is down by 1.8 million over the year. The 
number of permanent job losers, at 1.6 million, changed little in January but is down
by 1.9 million from a year earlier. 

In January, the number of persons jobless less than 5 weeks increased to 2.4 million
and accounted for 37.0 percent of the total unemployed. The number of long-term unemployed
(those jobless for 27 weeks or more) declined to 1.7 million. This measure is down from
4.0 million a year earlier but is 570,000 higher than in February 2020. The long-term
unemployed accounted for 25.9 percent of the total unemployed in January. 

After accounting for the annual adjustments to the population controls, the labor force
participation rate held at 62.2 percent in January, and the employment-population ratio
was little changed at 59.7 percent. Both measures are up over the year but remain below
their February 2020 levels (63.4 percent and 61.2 percent, respectively). 

The number of persons employed part time for economic reasons, at 3.7 million, continued
to trend down over the month. The over-the-year decline of 2.2 million brings this measure
to 673,000 below its February 2020 level. These individuals, who would have preferred
full-time employment, were working part time because their hours had been reduced or they
were unable to find full-time jobs. 

The number of persons not in the labor force who currently want a job was little changed
at 5.7 million in January. This measure decreased by 1.3 million over the year but is
708,000 higher than in February 2020. These individuals were not counted as unemployed
because they were not actively looking for work during the 4 weeks preceding the survey
or were unavailable to take a job. 

Among those not in the labor force who wanted a job, the number of persons marginally
attached to the labor force, at 1.5 million, changed little in January. These individuals
wanted and were available for work and had looked for a job sometime in the prior 12
months but had not looked for work in the 4 weeks preceding the survey. The number of
discouraged workers, a subset of the marginally attached who believed that no jobs were
available for them, was also little changed over the month, at 408,000. 

Household Survey Supplemental Data

In January, the share of employed persons who teleworked because of the coronavirus
pandemic increased to 15.4 percent. These data refer to employed persons who teleworked
or worked at home for pay at some point in the 4 weeks preceding the survey specifically
because of the pandemic.

In January, 6.0 million persons reported that they had been unable to work because their
employer closed or lost business due to the pandemic--that is, they did not work at all
or worked fewer hours at some point in the 4 weeks preceding the survey due to the
pandemic. This measure is considerably higher than the level of 3.1 million in December.
Among those who reported in January that they were unable to work because of pandemic-
related closures or lost business, 23.7 percent received at least some pay from their
employer for the hours not worked, up from the prior month. 

Among those not in the labor force in January, 1.8 million persons were prevented from
looking for work due to the pandemic, up from 1.1 million in the prior month. (To be
counted as unemployed, by definition, individuals must be either actively looking for
work or on temporary layoff.)

These supplemental data come from questions added to the household survey beginning in
May 2020 to help gauge the effects of the pandemic on the labor market. The data are
not seasonally adjusted. Tables with estimates from the supplemental questions for all
months are available online here. 

Establishment Survey Data

Total nonfarm payroll employment increased by 467,000 in January, compared with an
average monthly gain of 555,000 in 2021. Nonfarm employment has increased by 19.1 
million since April 2020 but is down by 2.9 million, or 1.9 percent, from its pre-
pandemic level in February 2020. In January, employment growth continued in leisure
and hospitality, in professional and business services, in retail trade, and in
transportation and warehousing. 

Employment in leisure and hospitality expanded by 151,000 in January, reflecting job
gains in food services and drinking places (+108,000) and in the accommodation industry
(+23,000). Since February 2020, employment in leisure and hospitality is down by 1.8
million, or 10.3 percent. 

In January, professional and business services added 86,000 jobs. Job gains occurred
in management and technical consulting services (+16,000), computer systems design
and related services (+15,000), architectural and engineering services (+8,000), and
other professional and technical services (+7,000). Employment in temporary help
services continued to trend up (+26,000). Employment in professional and business
services is 511,000 higher than in February 2020, largely in temporary help services
(+185,000), computer systems design and related services (+161,000), and management
and technical consulting services (+151,000).

Retail trade employment rose by 61,000 in January. Job growth occurred in general
merchandise stores (+29,000); health and personal care stores (+11,000); sporting
goods, hobby, book, and music stores (+7,000); and building material and garden supply
stores (+6,000). Retail trade employment is 61,000 above its level in February 2020.

Employment in transportation and warehousing increased by 54,000 in January and is 
542,000 higher than in February 2020. In January, job gains occurred in couriers and
messengers (+21,000), warehousing and storage (+13,000), truck transportation (+8,000),
and air transportation (+7,000). All four of these component industries have surpassed
their February 2020 employment levels, with particularly strong growth in warehousing
and storage (+410,000) and couriers and messengers (+236,000). 

Employment in local government education rose by 29,000 in January but is down by
359,000, or 4.4 percent, since February 2020.

Employment in health care continued to trend up (+18,000) over the month but is down
by 378,000, or 2.3 percent, from its level in February 2020. 

Wholesale trade added 16,000 jobs in January, with gains in both durable goods (+11,000)
and nondurable goods (+8,000). Employment in wholesale trade is 125,000, or 2.1 percent,
lower than in February 2020.

Employment showed little change over the month in mining, construction, manufacturing,
information, financial activities, and other services.   

In January, average hourly earnings for all employees on private nonfarm payrolls
increased by 23 cents to $31.63. Over the past 12 months, average hourly earnings have
increased by 5.7 percent. In January, average hourly earnings of private-sector
production and nonsupervisory employees rose by 17 cents to $26.92. 

The average workweek for all employees on private nonfarm payrolls fell by 0.2 hour to
34.5 hours in January. In manufacturing, the average workweek edged down by 0.1 hour to
40.2 hours, and overtime edged up by 0.1 hour to 3.3 hours. The average workweek for
production and nonsupervisory employees on private nonfarm payrolls decreased by 0.2 
hour to 33.9 hours. 

In accordance with usual practice, the seasonal adjustment models are updated as part
of the annual benchmark process. As a result of the updates, there were some large 
revisions to seasonally adjusted data that mostly offset each other. (See the note at
the end of this news release and table A for information about the revisions, the
annual benchmark process, and the seasonal adjustment model updates.)